Meta Health starts legal proceedings against ex-chief medical officer of subsidiary
Renald Yeo
HEALTHCARE technology company Meta Health has commenced legal proceedings in the High Court of Singapore against Vasanthan Metupalle, the former chief medical officer of its wholly owned subsidiary, 5Digital.
Other parties in the suit, which aims to recover “some of the group’s losses and wrongful payments made”, include a former director of a subsidiary of the group, and entities which are not part of the company, Meta Health said in a bourse filing on Wednesday (May 24).
The announcement comes after the group reported in an Apr 12 bourse filing that it had discovered “alleged irregularities” in March this year in some sale transactions of another wholly owned subsidiary, Gainhealth.
Police reports were filed, one on Mar 25 and the other on Mar 27, by customers of Gainhealth, Meta Health said in the April bourse filing.
The company filed its own police report on Apr 11 after the allegations, and subsequently provided additional information and materials to the police that arose from its ongoing internal investigation, Meta Health said on Wednesday.
It identified Dr Vasanthan, among others, as being “suspected of deceiving and/or seeking to deceive” the company and its subsidiaries, it added.
“The suit may have an impact on the financial performance of the group for the financial year ending Dec 31, 2023, depending on the timing and the outcome of the suit, as well as the amount which may be recovered by the group,” Meta Health said.
Updates on the financial impact of the suit will be provided in due course, it added.
Shares of Meta Health closed unchanged at S$0.014 on Wednesday.
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